Consumer prices rise in January

U.S. core consumer prices rose at their quickest pace in more than a year in January, government data showed on Thursday, but the increase was not strong enough to suggest a build-up in inflation pressures.

The Labor Department said its core Consumer Price Index, excluding food and energy, increased 0.2 percent -- the largest gain since October 2009 -- after rising 0.1 percent in December.

The increase, which was above economists' expectations for a 0.1 percent gain, was driven by rises in the cost of apparel, shelter and airline fares. At most, the rise suggests the disinflationary trend in core inflation has bottomed.

Overall CPI rose 0.4 percent after increasing by the same margin in December. Food and energy accounted for over two-thirds of the rise in overall CPI. Economists had expected headline CPI to rise 0.3 percent last month.

The report came a day after the government reported core wholesale prices increased at their fastest pace in more than two years in January, raising concerns among some investors that inflation might be building up.